Bari Singer M303 T/Th 1-2:15 Coffee Industry Dunkin Donuts vs. Starbucks In 2009, Dunkin’ Donuts reported a 4.4% increase in sales revenues bringing them to almost 4.3 billion dollars. It is predicted that the sales growth is a response to the sale of their caramel iced coffees as well as their Coolatta drinks. Dunkin’ Donuts does not only have coffee competitors, including Starbucks, but also has donut competitors including Krispy Kreme, which has recently gone out of business, therefore eliminating them as a competitor. McDonlad’s can also be thought of as a competitor in the fast food segment/industry. Starbucks, its main coffee and pastry competitor gains most of its sales (see figure 1) from coffee. It uses its image as a “third” place outside of home and work to establish its brand credibility and loyalty. Compared to Dunkin’ Donuts, Starbucks’ revenues in 2009 were 2.4 billion dollars, a decrease of 4% from the previous year. If you combine coffee and donut sales, Dunkin’ Donuts enjoys a 22.9% market share, while Starbucks

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